Almost everyone who has stayed back late at work has wondered, "Will I get paid extra for this?" And plenty of employers quietly wonder the opposite: "Do I really have to?" The new Labour Codes give a clearer answer than the old laws did, but you have to read two of them together. They are the Code on Wages, 2019 and the Occupational Safety, Health and Working Conditions (OSH) Code, 2020. In this guide, I'll explain overtime eligibility under the new Labour Codes in simple words, with examples, so you know who gets overtime, how much they get, and what records to keep.

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Overtime rules at a glance

If you only have two minutes, this table has the rules in one place.

Rule	What it says	Where it comes from
Overtime rate	Twice the normal wage rate	Code on Wages, 2019 (Sec. 14); OSH Code, 2020 (Sec. 27); OSH (Central) Rules, 2026 (Rule 69)
Normal hours	8 hours a day and 48 hours a week	Both Codes and the Central Rules
Quarterly limit	144 hours of overtime in a quarter	OSH (Central) Rules, 2026 (Rule 69)
Daily spread-over	Must not cross 12 hours, including rest breaks	OSH Code and Rules
Consent	Worker's consent needed before overtime	OSH Code, 2020
Payment time	End of the wage period in which overtime was worked	OSH (Central) Rules, 2026 (Rule 69)
Work on the weekly rest day	Paid at the overtime rate, not less than twice the normal rate, when a substitute rest day is also given	Code on Wages (Central) Rules, 2026 (Rule 6)
Women, before 6 am or after 7 pm	Only with consent and proper safety, transport and security arrangements	OSH Code and Rules
Apprentices	Not covered	Apprentices Act applies

To keep things simple, let's follow a few people through the rules. Meena runs a machine in a small factory. Sunil is the accounts clerk. Ravi is a supervisor. And Mr. Gupta owns the unit and signs their salaries. The names are made up, but the rules are real.

Who is eligible for overtime under the new Labour Codes?

Short answer: almost every worker is. Under the Code on Wages, any employee whose minimum wage is fixed under the Code gets overtime. Under the OSH Code, every "worker" who goes past 8 hours a day or 48 hours a week gets it.

Meena earns ₹13,000 a month. One busy week, her supervisor asks her to stay back for a few extra hours, and she wonders if that time will be paid. It will. Section 14 of the Code on Wages, 2019 covers her because her minimum wage is fixed under that Code. Section 27 of the OSH Code, 2020 covers her because she is a worker going beyond normal hours. Both laws point the same way for her. The Ministry's own FAQ reads the Code on Wages widely, so the safest habit is to read both laws side by side.

Who counts as a "worker" under the OSH Code?

Short answer: anyone employed for wages to do manual, skilled, unskilled, technical, operational or clerical work.

Sunil works in accounts on a fixed-term contract. He always assumed overtime was only for people on the shop floor. He was wrong. Contract, fixed-term and casual staff all count, and so does clerical work. Supervisors are included too, as long as they earn up to ₹18,000 a month. Sales promotion employees and working journalists are named specifically.

Who is left out? Apprentices, who fall under the Apprentices Act. Under the OSH Code, people working mainly in a managerial or administrative role, and supervisors earning above ₹18,000 a month, are also not "workers".

Are managers and supervisors eligible for overtime?

Short answer: it depends on which law you read, and this is the one place where the two Codes don't fully agree.

Ravi is a supervisor earning ₹31,200 a month. Under the OSH Code he is above the ₹18,000 line, so he is not a "worker". But the Ministry FAQ says any employee whose minimum wage is fixed under the Code on Wages is entitled to overtime, and that can reach supervisors and managers too. So Mr. Gupta has two readings in front of him. Paying Ravi is the safer one. Here is how the different roles stack up:

Who	Code on Wages (Sec. 14)	OSH Code (Sec. 27)	What to do
Clerical, technical, operational and sales staff	Eligible	Eligible	Pay 2× overtime
Supervisors earning up to ₹18,000/month	Eligible	Eligible	Pay 2× overtime
Supervisors earning above ₹18,000/month	Eligible (Ministry FAQ)	Not a "worker"	Safer to pay; take advice
Managerial or administrative staff	Debated	Excluded	Take legal advice before excluding
Apprentices	Not covered	Not covered	Apprentices Act applies

The Code on Wages fixes minimum wages for all employees, so on a plain reading most staff are covered. How this applies to senior managers is still debated, so please don't leave anyone out without proper advice.

When does overtime actually start?

Short answer: the moment work goes beyond 8 hours in a day or 48 hours in a week. Both limits are checked.

On Monday, a big order comes in and Meena ends up working 10 hours. Those last 2 hours are overtime, even though her week is nowhere near 48 hours yet. The weekly check works the same way: every hour worked beyond 48 in the week counts as overtime. Two small notes. The spread-over of the day, including rest breaks, must not cross 12 hours, and the weekly rest day follows your State rules.

How is overtime pay calculated?

Short answer: every overtime hour is paid at double the normal hourly rate. Here is the formula in plain words:

• Overtime pay = Hourly rate × 2 × Overtime hours

• Hourly rate = Monthly wages ÷ 26 days ÷ 8 hours

The 26 and 8 method is common practice, so do check your State rules.

Sunil earns ₹20,800 a month, so one hour of his time is worth ₹100. An overtime hour pays double, which is ₹200. This month he worked 20 extra hours, so he should get ₹4,000. Meena's hour is worth ₹62.50, so her overtime rate is ₹125. Her 10 extra hours come to ₹1,250. Ravi's hour is ₹150, his overtime rate is ₹300, and 6 extra hours give him ₹1,800.

One more thing to know. "Wages" here means basic pay plus DA plus retaining allowance. There is also a 50% rule: if things like HRA and conveyance make up more than half of the total pay, the extra amount is added back to wages.

Does a worker have to agree to overtime?

Short answer: yes. Under the OSH Code, overtime can be done only with the worker's consent.

It's Friday, 5 pm. Mr. Gupta walks up to Meena and says, "Stay till 9 tonight, we have a delivery." Under the old Factories Act, he could have simply said that. Under the OSH Code, he has to ask first, and Meena is free to agree or not. This is a real change from the earlier law.

There is an extra rule for women. They can work before 6 am or after 7 pm only with their consent and proper safety, transport and security arrangements. Whatever the answer, keep the consent with the overtime record, because inspectors can ask for it.

How many overtime hours are allowed?

Short answer: up to 144 hours in a quarter, which means three months, under the OSH (Central) Rules, 2026.

Diwali season is near and Mr. Gupta wants his team working extra for weeks. Before he plans the shifts, he checks the ceiling: 144 hours of overtime for each worker over the quarter, and the 12-hour daily spread-over still applies. He also remembers that States set their own limits for establishments in the State sphere, so he checks his State's rules too.

When must overtime be paid, and what records should an employer keep?

Short answer: at the end of the wage period in which it was worked, along with normal wages.

Mr. Gupta once thought he could settle everyone's overtime at the end of the year. He can't. Overtime is not paid yearly and not at exit. It goes out with that month's wages, and the hours and amount must show separately on the wage slip and in the register. Overtime allowance also counts in the 50% wage rule, so heavy overtime can raise "wages" for other statutory dues.

Now imagine an inspector walks in. Mr. Gupta is calm because he follows a simple routine:

1. Take the worker's consent before the overtime is worked.

2. Record the hours every day.

3. Apply the 2× rate.

4. Pay it with wages for that wage period.

He keeps three records ready: the consent, the overtime register (date, hours, rate and amount for each worker), and the wage slip.

Notifications you should know about

The overtime rules did not arrive in one go. The Codes came first, and the Central Rules that fill in the details followed a few months later.

Date	Notification	Why it matters for overtime
21 November 2025	The four Labour Codes notified, including the Code on Wages, 2019 and the OSH Code, 2020	Sets overtime eligibility and the 2× rate
16 March 2026	Ministry of Labour and Employment FAQs on applicability	The Ministry's reading of who is covered
8 May 2026	Code on Wages (Central) Rules, 2026, G.S.R. 343(E), in force on publication in the Official Gazette	Normal day, weekly rest day and rest-day overtime
8 and 9 May 2026	Central Rules notified for all four Codes, including the OSH (Central) Rules, 2026	The 144-hour quarterly limit and overtime payment rules

State-sphere establishments should also follow their own State rules, which can differ. Keep an eye on the latest gazette notifications for changes.

Overtime eligibility: frequently asked questions

Is overtime pay compulsory under the new Labour Codes?

Yes. For eligible employees and workers, every hour beyond normal working hours must be paid at twice the normal wage.

Can my employer force me to work overtime?

No. Under the OSH Code, overtime needs the worker's consent, and it should be taken before the work starts.

How many overtime hours are allowed in a quarter?

Up to 144 hours under the OSH (Central) Rules, 2026. State rules for State-sphere establishments may differ.

When must overtime be paid?

At the end of the wage period in which it was worked, along with normal wages. Not at year-end and not at exit.

What if I work on my weekly rest day?

If you also get a substitute rest day, the rest-day work is paid at the overtime rate, which is not less than twice the normal rate (Code on Wages (Central) Rules, 2026, Rule 6).

Are managers eligible for overtime?

It depends. The OSH Code leaves out people working mainly in a managerial or administrative role, but the Ministry FAQ says anyone whose minimum wage is fixed under the Code on Wages can claim it. Take advice before excluding anyone.

Are apprentices eligible for overtime?

No. Neither Code covers apprentices. The Apprentices Act applies to them.

The bottom line

No consent, no overtime, and every overtime hour is paid at twice the normal rate. Keep your consent records, registers and wage slips in order, and you will be on much safer ground if an inspector walks in. Rules and limits can change, and State rules and minimum wages may differ, so always check the latest notifications. This article is general information, not legal advice.

Want to go deeper? Our free pages cover state-wise minimum wages, new Labour Codes FAQs, the Labour Codes tracker and the latest gazette notifications.

About the author

Sandeep Kumar is the Founder of Praans Consultech. He writes about labour law and payroll compliance in plain language so that employers and employees can understand their rights and duties.

He holds an LLB and an LLM (Master of Laws), is currently pursuing a Ph.D., and is an alumnus of XLRI. He has over 15 years of experience in labour law, business registration and startup advisory. Before starting Praans Consultech, he worked as a Director at a leading logistics company, where he led large teams.

Visit praansconsultech.com or write to info@praansconsultech.com.

Overtime Eligibility Under the New Labour Codes

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